Though trading is not gambling, it’s undeniable that the two indeed have a lot of similarities. While many traders cannot bear being compared to gamblers, there are similarities between gambling and trading that might make it easier for you to wrap your head around successful trading. But there is no denying of the fact that you need to know well about the trading platforms before you start trading. Also one needs to be well aware of the different Forex Exchange for doing a successful trading.
Why trading is like gambling
One very obvious similarity between the two activities is that you’re dealing with odds and bets. You will have to place a bet on something against another thing and then make your money.
When you enter trading, you bet on a stock or a currency—or any other security, for that matter—to behave a certain way. Depending on how much skill and analytic methods you have, your bet can either be right or wrong. In gambling, you go up a casino and look at wheel or the cards. You try to analyze your playmate’s movements and cards to see whether the y have your card or not. It’s really not that much different.
However, of course, trading is knowing everything. When you are trading, you exert effort to understand charts and read market movements as accurately as possible. There more strategies that you can use trading, too.
Taking advantage of the similarities
Now, if you are trying to take advantage of these similarities to turn the deck to your favor, you can find some great ways.
First, a casino owner plays games that they know. The more they’re sure about the game or the bet, the more they would stick to it. That’s also true for trading. Take advantage of trades with higher probabilities. It’s better to have very few sure ball trades than having a lot of uncertain ones.
Second, casino goers have tremendous risk tolerance. They won’t budge no matter how risky their cards are. As for a trader, having a high level of risk tolerance means being able to try out new ways of trading without losing sleep at night. Remember that in trading, much like in gambling, the higher the risk you incur, the higher the reward you may get.
Third, a casino big boss wants to maximize his chances of gaining cheese, so he keeps the game as long as he can and the casino open 24 hours, 7 days a week. One, two, or a hundred customer a day may look insignificant compared to the thousands of customers he could get by simply letting the shop open the whole time.
As for a trader, remember that one big jackpot trade today will not be enough to say that you’re a successful trader. You would have to continue trading and trading until you know how to make equal, consistent trades. As we indicated before, it’s better to have decent but steady flow of trade income than to have a one time-big time jackpot trade and then nothing.
Trading and gambling are very similar activities, and there are lot you can learn from a gambler as a trader. However, the main difference lies on the fact that a traders is not merely a casino player. You as a trader, if you’re dedicated enough, is more like the casino owner himself/herself—you stack the odds in your favour.